EU extends AML contact rules to crypto

TLDR

The EU has adopted new AML rules that require many crypto firms to appoint local compliance contacts in each EU country they serve.

1. The European Commission approved a delegated act that extends its AML central contact requirement to crypto service providers, aligning them with rules used for payment and e?money firms.
2. Crypto exchanges and platforms that pass a roughly EUR 3 million activity threshold per country will need a named local AML representative, with regulators able to require one even below that level in high risk cases.
3. The rules are not yet in force and still need scrutiny by the European Parliament and Council, so the key watchpoint is when they are published and how strictly national supervisors enforce them.

Deep Dive

1. What The EU Just Changed

According to a European Commission delegated act reported in a recent regulatory summary, the EU has extended its AML Crypto Central Contact requirement to digital asset service providers, not only payment and e?money issuers.

The legal basis is Article 45 of the EUs AML directive, using powers created when AML rules were formally expanded to cover crypto asset service providers in 2023. The European Banking Authority drafted technical standards to plug the earlier gap for crypto firms.

The act is not self executing yet. It must first pass a scrutiny period in the European Parliament and Council, then be published in the Official Journal. Twenty days after publication, it becomes binding across all member states without extra national laws.

2. How This Hits Crypto Firms

The framework requires a crypto firm to appoint a local contact person in a host country once its cumulative annual services into that country exceed about EUR 3 million. This mirrors the dual trigger already used for payment and e?money companies.

Supervisors can also demand a local representative below that threshold if they see elevated money laundering or terrorist financing risk. The definition of establishment is widened to include firms that mainly serve clients online with little or no physical presence.

In practice this means exchanges, brokers and other intermediaries that passport services across the EU will face more direct local supervision, extra staffing and reporting costs, and less room to operate from afar while only being regulated in one member state.

3. Timeline And Risks To Watch

The key procedural step is the Parliament and Council scrutiny phase. If they do not object, the delegated act proceeds to publication, after which national AML authorities can begin enforcing the central contact requirements.

For crypto firms already preparing for MiCA authorizations, this adds another layer of AML and local presence planning. For offshore platforms trying to serve EU clients without strong local footprints, the risk of targeted enforcement and de facto geofencing increases.

Users should watch for updated terms, KYC processes and country specific notices from their exchanges as these obligations move closer to being enforceable.

Conclusion

The EU is moving to treat crypto intermediaries more like traditional financial institutions by requiring local AML contact points in every EU market they meaningfully serve. This strengthens regulators tools against cross border abuse and nudges the industry toward fewer, more heavily supervised platforms, with the biggest question now being how quickly and strictly national authorities apply the new regime once it clears the final political checks.